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Urgent, need help, unique situation, seeking prop shop
- Thread starter calhawk01
- Start date
He can always open a branch agreement and let you trade in his group. Easiest way.
can you please elaborate? i'm sure requirements for these vary from company to company but is there a standardized requirement?
just out of curiosity, how big of a crime is it if i trade on his behalf remotely?
can you please elaborate? i'm sure requirements for these vary from company to company but is there a standardized requirement?
just out of curiosity, how big of a crime is it if i trade on his behalf remotely?
It's a federal crime. You will be charged with money laundering. Federal courts...federal prisons. Oh and your firm will be shut down. And then they will sue you and your investor. So yeah....don't do it.
You can try Interactive Brokers. You can set up Advisor,broker,proprietary trading groups, hedge funds,etc. And you can set up accounts in which you can trade someone elses account. Check theis web site out and give them a call.
hi all- I have a situation where I have an investor who wants me to trade on his behalf as a prop trader. He wants to be the owner of the prop account. I want to be the trader.
Do we know of a prop firm that lets you setup an account where the owner of the account designates a trader on his behalf? And to even go further, splits the profit/loss based on whatever the owner and trader have agreed upon?
Thanks
No, props will not allow you to trade another person's account...Your best bet is IB...
+1 to what mav said first.
just open a retail account with any broker and appoint yourself trading manager.
much easier - minimum capital required is 10kUSD or such.
right. and i agree with the IB option as well. But I wanted to leverage the prop capital. thats the issue. will have to call up some shops to inquire about their branch agreement. anyone has any experience in that department?
right. and i agree with the IB option as well. But I wanted to leverage the prop capital. thats the issue. will have to call up some shops to inquire about their branch agreement. anyone has any experience in that department?
Prop firms cannot LEGALLY allow you to trade someone else's capital....PERIOD. You need to establish an entity. I ran the office of a regional Chicago prop firm for 6 years and put several of these agreements together.
money laundering = changing the owner of the money = non legal.
Giving money to a company (with different owner structure) = changing owner of the money = possible money laundering.
If money stays in the hand of the money owner (= investor, and you just get trader) there is no legal problem.
Just you have to talk to the indivudal prop firm, there are firms which accept 3rd party trader (why not).
Giving money to a company (with different owner structure) = changing owner of the money = possible money laundering.
If money stays in the hand of the money owner (= investor, and you just get trader) there is no legal problem.
Just you have to talk to the indivudal prop firm, there are firms which accept 3rd party trader (why not).
money laundering = changing the owner of the money = non legal.
Giving money to a company (with different owner structure) = changing owner of the money = possible money laundering.
If money stays in the hand of the money owner (= investor, and you just get trader) there is no legal problem.
Just you have to talk to the indivudal prop firm, there are firms which accept 3rd party trader (why not).
This is 100% false. For one, prop accounts are NOT individual accounts. The money is NOT in anyone's name. And there in lies the rub. THIS is why prop firms don't allow it. He needs to set up an entity and that entity needs to become a member of the prop firm. How he structures that entity is his business. But that entity will become a class B member of the prop firm.